Ca sales tax on numismatic items in excess of $1500 in single transaction

cucamongacoin

Ca dealers, so are purchases of $1500 in numismatic items exempt or no? Here's the code from the BOE website
Regulation 1599. Coins and Bullion.

Reference: Sections 6007, 6008, 6009, 6011, 6354, and 6355, Revenue and Taxation Code.

(a) GENERAL.

(1) SALES OF COINS. The transfer of coins for use solely as a medium of exchange, i.e., as legal tender, is not subject to tax even though the transferee pays an amount exceeding the face amount. For example, tax does not apply to a transaction whereby a coin changer returns only 95 cents on a dollar. On the other hand, tax does apply to sales of coins as collector's items or as an investment, except as otherwise specified in this regulation.

(2) SALES OF GOLD OR SILVER BULLION. Tax applies to sales of gold or silver bullion except as provided in subdivision (a)(3) below.

(3) SALES IN BULK OF MONETIZED BULLION, NONMONETIZED GOLD OR SILVER BULLION, AND NUMISMATIC COINS. Sales in bulk of "monetized bullion", nonmonetized gold or silver bullion, and numismatic coins which sales are substantially equivalent to transactions in securities or commodities through a national securities or commodities exchange, are exempt from both the sales tax and the use tax. The exemption for sales in bulk of nonmonetized gold or silver bullion and numismatic coins is effective with respect to sales occurring on and after January 1, 1986.

Seems contradictory, what is the reality?
Thanks, Mark

cucamongacoin

Key word in there appears to be "in bulk"??

Justacommeman

I’ve never paid tax or have been asked to on purchases $1500+

m

ctf_error_coins

No tax on coin transactions over $1500. You can combine coins to meet the threshold.

mbogoman

@ErrorsOnCoins said:
No tax on coin transactions over $1500. You can combine coins to meet the threshold.

This.

Coinstartled

So if you are at $1300, buy $201 in presidential dollars at face.

BAJJERFAN

@Coinstartled said:
So if you are at $1300, buy $201 in presidential dollars at face.

From whom? The same dealer?

ctf_error_coins

@BAJJERFAN said:

@Coinstartled said:
So if you are at $1300, buy $201 in presidential dollars at face.

From whom? The same dealer?

Same dealer on the same date.

BAJJERFAN

@ErrorsOnCoins said:

@BAJJERFAN said:

@Coinstartled said:
So if you are at $1300, buy $201 in presidential dollars at face.

From whom? The same dealer?

Same dealer on the same date.

I figgered that. Same invoice or that doesn't matter? How many dealers have hundreds of dollars in Prez bux layin around? Mite as swell ask for ten 20s in exchange for 2 Bens, LOL.

What if I bought a coin for $200 and returned it the next day? Would that work?

topstuf

Buy 2 coins . Return one.

Zoins

Some dealers don't sell orders less than $1500 to CA residents. It's not worth it to jump through the hoops.

jt88

How about paper money? Is 1500 also count for paper money?

ReadyFireAim

@topstuf said:
Buy 2 coins . Return one.

Agree, Like and LOL

mbogoman

@ErrorsOnCoins said:
No tax on coin transactions over $1500. You can combine coins to meet the threshold.

This.> @topstuf said:

Buy 2 coins . Return one.

I have done this before - at the suggestion of the dealer.

BryceM

I ended up with a set of Zombucks once to break the $1500 number.

Kkathyl

Exempt

Kkathyl

@cucamongacoin said:
Ca dealers, so are purchases of $1500 in numismatic items exempt or no? Here's the code from the BOE website
Regulation 1599. Coins and Bullion.

Reference: Sections 6007, 6008, 6009, 6011, 6354, and 6355, Revenue and Taxation Code.

(a) GENERAL.

(1) SALES OF COINS. The transfer of coins for use solely as a medium of exchange, i.e., as legal tender, is not subject to tax even though the transferee pays an amount exceeding the face amount. For example, tax does not apply to a transaction whereby a coin changer returns only 95 cents on a dollar. On the other hand, tax does apply to sales of coins as collector's items or as an investment, except as otherwise specified in this regulation.

(2) SALES OF GOLD OR SILVER BULLION. Tax applies to sales of gold or silver bullion except as provided in subdivision (a)(3) below.

(3) SALES IN BULK OF MONETIZED BULLION, NONMONETIZED GOLD OR SILVER BULLION, AND NUMISMATIC COINS. Sales in bulk of "monetized bullion", nonmonetized gold or silver bullion, and numismatic coins which sales are substantially equivalent to transactions in securities or commodities through a national securities or commodities exchange, are exempt from both the sales tax and the use tax. The exemption for sales in bulk of nonmonetized gold or silver bullion and numismatic coins is effective with respect to sales occurring on and after January 1, 1986.

Seems contradictory, what is the reality?
Thanks, Mark

Anyone who is buying in Bulk is going to be required to have a resale certificate on file stating they are buying for resale. So what they are covering in the language is business transaction being done without a license to do so in that state.

If a business in CA is a certified bulk distribution for a mint, they will already have that covered. You buying coins to flip for profit to another to avoid tax law is taxable event. So just buy legal denomination or 1,500.00. Save your receipts. I would not live in a state with such tax laws. I moved from one about 6 years ago and am so glad I did. I got tired of asking for salt when dinning and paying 24k year property school tax. Now My money works for me and I fly my flag proudly.

crazyhounddog

@Justacommeman said:
I’ve never paid tax or have been asked to on purchases $1500+

m

I'll cosign that brother, @Justacommenman, Mark. Never have I paid tax on any purchase of coins or bullion over the price of 1500 bucks.

johnny9434

@topstuf said:
Buy 2 coins . Return one.

Work some thing out with your dealer

ctf_error_coins

@topstuf said:
Buy 2 coins . Return one.

Absolutely disagree.

Do Not mess with the Tax Man.